LePage wants to remove income tax on pensions

AUGUSTA, Maine — Gov. Paul LePage wants to eliminate the state income tax on pensions to help fixed-income elderly residents and to lure wealthy retirees back to the state.

Republicans and Democrats say they’re willing to consider the idea but caution that it could be difficult to lift the tax because of ongoing budget concerns.

Michael Allen, director of economic research for Maine Revenue Services, estimates that the move would cost $93 million and reduce taxes for 75,000 people.

The Maine Sunday Telegram says LePage is asking Mainers to put pressure on their lawmakers to drop the tax on pensions. The newspaper says an audience burst into applause when he discussed the proposal last month at a town hall meeting in Dover-Foxcroft.